BILL NUMBER: AB 1338	CHAPTERED  09/29/00

	CHAPTER   917
	FILED WITH SECRETARY OF STATE   SEPTEMBER 29, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 29, 2000
	PASSED THE ASSEMBLY   SEPTEMBER 1, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	AMENDED IN SENATE   AUGUST 31, 2000
	AMENDED IN SENATE   AUGUST 28, 2000
	AMENDED IN SENATE   JUNE 21, 2000
	AMENDED IN SENATE   JUNE 8, 2000
	AMENDED IN ASSEMBLY   JANUARY 12, 2000
	AMENDED IN ASSEMBLY   JANUARY 3, 2000
	AMENDED IN ASSEMBLY   APRIL 15, 1999

INTRODUCED BY   Assembly Member Reyes

                        FEBRUARY 26, 1999

   An act to amend Sections 1684, 1684.5, 1687, 1698, and 1698.1 of,
and to add Sections 1682.8 and 1695.55 to, the Labor Code, relating
to farm labor contractors.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1338, Reyes.  Farm labor contractors:  licenses.
   Existing law prescribes various fines and penalties for farm labor
contractors who violate provisions of the law applicable to farm
labor contractors.
   This bill would authorize the Labor Commissioner to establish and
maintain a Farm Labor Contractor Special Enforcement Unit, as
specified, to enforce provisions of law relating to farm workers, as
provided.
   Existing law requires farm labor contractors to deposit a surety
bond in the sum of $10,000, as a condition to obtain a license from
the Labor Commissioner.  The contractor is permitted to give a
deposit in lieu of a bond.
   This bill would require a farm labor contractor to deposit a
surety bond in specified amounts based on the size of the person's
payroll, as provided.  Farm labor contractors would no longer be
permitted to give a deposit instead of a bond.
   Existing law requires farm labor contractors to pay a $350 annual
license fee.
   This bill would increase the licensing fee to $500.
   Existing law provides that $25 of the annual licensing fee be
deposited into a separate account, funds from which are to be
disbursed by the Labor Commissioner to persons damaged by licensees.

   This bill would designate the Farmworker Remedial Account as the
separate account, make an appropriation by increasing to $50 the
amount of the licensing fee deposited into that account, provide that
all other license fees be deposited in the State Treasury and
credited to the General Fund.
   Existing law requires the Labor Commissioner to annually submit a
list of licensees to the Department of the California Highway Patrol.

   This bill would require that lists of licensees be submitted on a
quarterly basis.
   Existing law requires contractors to furnish growers with a
payroll list of all of all the contractor's employees working for the
grower.
   This bill would require contractors to furnish growers with
additional payroll records reflecting the hours worked by employees
and the wage paid.
   Existing law requires that applicants for a farm labor contractor'
s license take an oral or written examination or both.
   This bill would require applicants to take only a written
examination and answer 85% of the questions correctly in order to
obtain a license.  This bill would further require that licensees
participate annually in 8 hours of continuing education courses
approved by the Labor Commissioner, in consultation with specified
public officers and agencies.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1682.8 is added to the Labor Code, to read:
   1682.8.  The Labor Commissioner may establish and maintain a Farm
Labor Contractor Special Enforcement Unit within the Division of
Labor Standards Enforcement office in Fresno of the Department of
Industrial Relations for the hiring of additional agents to enforce
the provisions of this chapter by revoking, suspending, or refusing
to renew farm labor contractors' licenses pursuant to Section 1690.
  SEC. 2.  Section 1684 of the Labor Code is amended to read:
   1684.  The Labor Commissioner shall not issue to any person a
license to act as a farm labor contractor, nor shall the Labor
Commissioner renew that license, until all of the following
conditions are satisfied:
   (a) The person has executed a written application therefor in a
form prescribed by the Labor Commissioner, subscribed and sworn to by
the person, and containing all of the following:
   (1) A statement by the person of all facts required by the Labor
Commissioner concerning the applicant's character, competency,
responsibility, and the manner and method by which the person
proposes to conduct operations as a farm labor contractor if the
license is issued.
   (2) The names and addresses of all persons, except bona fide
employees on stated salaries, financially interested, either as
partners, associates, or profit sharers, in the proposed operation as
a farm labor contractor, together with the amount of their
respective interests.
   (3) A declaration consenting to the designation by a court of the
Labor Commissioner as an agent available to accept service of summons
in any action against the licensee if the licensee has left the
jurisdiction in which the action is commenced or otherwise has become
unavailable to accept service.
   (b) The Labor Commissioner, after investigation, is satisfied as
to the character, competency, and responsibility of the person.
   (c) The person has deposited with the Labor Commissioner a surety
bond in an amount based on the size of the person's annual payroll
for all employees, as follows:
   (1) For payrolls up to five hundred thousand dollars ($500,000), a
twenty-five thousand dollar ($25,000) bond.
   (2) For payrolls of five hundred thousand dollars ($500,000) to
two million dollars ($2,000,000), a fifty thousand dollar ($50,000)
bond.
   (3) For payrolls greater than two million dollars ($2,000,000), a
seventy-five thousand dollar ($75,000) bond.
   Where the contractor has been the subject of a final judgment in a
year in an amount equal to that of the bond required, he or she
shall be required to deposit an additional bond within 60 days.  The
bond shall be payable to the people of the State of California and
shall be conditioned that the farm labor contractor will comply with
all the terms and provisions of this chapter and will pay all damages
occasioned to any person by failure to do so, or by any violation of
this chapter, or false statements or misrepresentations made in the
procurement of the license.  The bond shall also be payable for
interest on wages and for any damages arising from violation of
orders of the Industrial Welfare Commission, but shall not be payable
for penalties on nonpayment or late payment of wages pursuant to
Section 203.
   (d) The person has paid to the Labor Commissioner a license fee of
five hundred dollars ($500) plus a filing fee of ten dollars ($10).
However, where a timely application for renewal is filed, the ten
dollar ($10) filing fee is not required.  The Labor Commissioner
shall deposit fifty dollars ($50) of each licensee's annual license
fee into the Farmworker Remedial Account.  Funds from this account
shall be disbursed by the Labor Commissioner only to persons
determined by the Labor Commissioner to have been damaged by any
licensee when the damage exceeds the limits of the licensee's bond,
or to persons determined by the Labor Commissioner to have been
damaged by an unlicensed farm labor contractor.  In making these
determinations, the Labor Commissioner shall disburse funds from the
Farmworker Remedial Account to satisfy claims against farm labor
contractors or unlicensed farm labor contractors, which shall also
include interest on wages and any damages arising from the violation
of orders of the Industrial Welfare Commission, but shall not include
penalties on nonpayment or late payment of wages pursuant to Section
203.  The Labor Commissioner may disburse funds from the Farmworker
Remedial Account to farm labor contractors, for payment of
farmworkers, where a contractor is unable to pay farmworkers due to
the failure of a grower or packer to pay the contractor.  Any
disbursed funds subsequently recovered by the Labor Commissioner
pursuant to Section 1693, or otherwise, shall be returned to the
Farmworker Remedial Account.
   (e) The person has taken a written examination that demonstrates
an essential degree of knowledge of the current laws and
administrative regulations concerning farm labor contractors as the
Labor Commissioner deems necessary for the safety and protection of
farmers, farmworkers, and the public.  To successfully complete the
examinations, the person must correctly answer at least 85 percent of
the questions posed.  The examination period shall not exceed four
hours.  The examination may only be taken a maximum of three times in
a calendar year.  The examinations shall include a demonstration of
knowledge of the current laws and regulations regarding wages, hours,
and working conditions, penalties, employee housing and
transportation, collective bargaining, field sanitation, and safe
work practices related to pesticide use, including all of the
following subjects:
   (1) Field reentry regulations.
   (2) Worker pesticide safety training.
   (3) Employer responsibility for safe working conditions.
   (4) Symptoms and appropriate treatment of pesticide poisoning.
   (f) (1) The  Labor Commissioner shall consult with the Director of
Pesticide Regulation, the Department of the California Highway
Patrol, the Department of Housing and Community Development, the
Employment Development Department, the Department of Food and
Agriculture, the Department of Motor Vehicles, and the Division of
Occupational Safety and Health in preparing the examination required
by subdivision (e) and the appropriate educational materials
pertaining to the matters included in the examination, and may charge
a fee of not more than one hundred dollars ($100) to cover the cost
of administration of the examination.
   (2) In addition, the person must enroll and participate in at
least eight hours of relevant, educational classes each year.  The
classes shall be chosen from a list of approved classes prepared by
the Labor Commissioner, in consultation with the persons and entities
listed in paragraph (1) and county agricultural commissioners.
   (g) The Labor Commissioner may renew a license without requiring
the applicant for renewal to take the examination specified in
subdivision (e) if the Labor Commissioner finds that the applicant
meets all of the following criteria:
   (1) Has satisfactorily completed the examination during the
immediately preceding two years.
   (2) Has not during the preceding year been found to be in
violation of any applicable laws or regulations including, but not
limited to, Division 7 (commencing with Section 12501) of the Food
and Agricultural Code Part 1 (commencing with Section 17000) of
Division 13 of the Health and Safety Code, Division 2 (commencing
with Section 200), Division 4 (commencing with Section 3200), and
Division 5 (commencing with Section 6300) of this code, and Chapter 1
(commencing with Section 12500) of Division 6 of the Vehicle Code.
   (3) Has, for each year since the license was obtained, enrolled
and participated in at least eight hours of relevant, educational
classes, chosen from a list of approved classes prepared by the Labor
Commissioner.
   (4) Has complied with all other requirements of this section.
   (h) The person has registered as a farm labor contractor pursuant
to the federal Migrant and Seasonal Agricultural Worker Protection
Act, when registration is required pursuant to federal law.
  SEC. 3.  Section 1684.5 of the Labor Code is amended to read:
   1684.5.  The Labor Commissioner shall quarterly submit to the
Department of the California Highway Patrol a list of all licensees.

  SEC. 4.  Section 1687 of the Labor Code is amended to read:
   1687.  (a) Each laminated license shall contain, on the face
thereof, all of the following:
   (1) The name and address of the licensee and the fact that the
licensee is licensed to act as a farm labor contractor for the period
upon the face of the license only.
   (2) The number, date of issuance, and date of expiration of the
license.
   (3) The amount of the surety bond deposited by the licensee.
   (4) The fact that the license may not be transferred or assigned.

   (5) A picture of the licensee taken at the time of application.
   (b) The license shall be similar in size and format to a driver's
license issued by the Department of Motor Vehicles, and shall contain
a hologram and a signature to verify authenticity.  The cost of the
hologrammed license shall be appropriated from the license fee.
   (c) The license shall contain on the back thereof the definition
of a farm labor contractor, as defined by subdivision (b) of Section
1682.
  SEC. 5.  Section 1695.55 is added to the Labor Code, to read:
   1695.55.  (a) Every person acting in the capacity of a farm labor
contractor shall provide any grower with whom he or she has
contracted to supply farmworkers a payroll record for each farmworker
providing labor under the contract.  The payroll record shall
include a disclosure of the wages and hours worked for each
farmworker.
   (b) Each grower entering into a contract with a farm labor
contractor shall retain a copy of the payroll record provided by the
contractor for the duration of the contract.
  SEC. 6.  Section 1698 of the Labor Code is amended to read:
   1698.  All moneys collected for fines collected for violations of
the provisions of this chapter shall be paid into the Farmworker
Remedial Account and shall be available, upon appropriation, for
purposes of this chapter.  Except as provided in Section 1684, all
moneys collected for licenses issued pursuant to this chapter shall
be paid into the State Treasury and credited to the General Fund.
  SEC. 7.  Section 1698.1 of the Labor Code is amended to read:
   1698.1.  No licensee shall sell, transfer or give away any
interest in or the right to participate in the profits of said
licensee's business without the written consent of the Labor
Commissioner.  A violation of this section shall constitute a
misdemeanor, and shall be punishable by a fine of not less than two
hundred dollars ($200) nor more than two thousand dollars ($2,000),
or imprisonment for not more than 60 days, or both.
